Energy Suppliers accused of refusing to provide energy to Pubs due to Covid-19 lockdowns
The trade association The British Beer & Pub Association (BBPA) is calling out energy suppliers who are refusing to supply electricity and gas to pubs that were forced to close as a result of the Covid-19 pandemic.
What’s the issue?
The BBPA says that many pubs across the UK have been met with poor customer service and in some cases were told by their energy supplier that supply is being refused and contracts not renewed even if the supply includes domestic use.
Many pub landlords live above their pubs so the refusal of energy suppliers to provide energy means that they are failing to live up to their obligations under the rules set by the regulator Ofgem.
In some cases, pubs have been left in limbo for weeks or months when trying to renegotiate an energy contract. Those that have been offered contracts are often hit with rates far higher than the typical market rate.
“Publicans have already suffered enough through this pandemic. The last thing they need is energy companies refusing to supply them or renew contracts. The regulations are clear that energy suppliers are obliged to provide domestic energy to a pub when it is lived in.
‘Considering so many families live in pubs, Ofgem must really do the right thing and ensure this unfair behaviour is ended. It’s time for energy companies to show support for the sector through fair dealing,” said Emma McClarkin, Chief Executive of the British Beer & Pub Association.
It's not just the pub industry that has accused the energy sector of poor practices during the lockdowns. The hospitality sector in general has accused energy suppliers of hitting businesses with higher tariffs and demanding what has been described as extortionate deposits.
Also read: Struggling Hospitality Sector accuses Energy Suppliers of imposing price hikes and unfair deposits
Ofgem reaction
The energy regulator met with representatives of the BBPA and agreed to further investigate the issues reported.
Following the meeting the BBPA said that it remains concerned that publicans seeking new energy deals and contracts continue to be refused supply or are forced to pay inflated fees during the process, increasing risks to their businesses and limiting their options for competitive energy supply rates.
“Ofgem has been keen to hear about the experiences of licensees and explain the work they are doing with supply. However, I was disappointed in Ofgem’s and the Energy Minister’s unwillingness to tackle the poor commercial behaviour demonstrated by many utility companies towards small hospitality businesses. Many pubs are also the family home and refusing to supply energy to families already hit hard by the pandemic is simply unacceptable,” said Chris Jowsey, Chief Executive of Admiral Taverns, a UK pub operating business.
The BBPA is urging publicans facing energy supplier issues to report them to Ofgem and wants energy suppliers to work with the industry to try and restore confidence among publicans.
Also read: Prime Minister announces Covid-19 lockdown easing roadmap: What does it mean for energy suppliers?
Our team of energy market consultants can guide you through the steps to enter the UK energy market.
Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates Ltd can help.
Further Reading
‘Green’ Tariffs to come under increased government scrutiny over growing ‘Greenwashing’ concerns
Centrica buys Nabuh Energy to expand the British Gas brand
Dyball Associates are proud to help new supply businesses successfully launch in the UK market.
Through our energy market consultancy services, and the software we've developed, we're supporting new UK electricity and gas suppliers get set up and start supplying.
Follow us on LinkedIn to keep up to date with the latest news and updates in the energy industry.
More articles
Latest News
© 2022, Dyball Associates Limited. All Rights Reserved.
Web design by CW.
